This is not a case of punishing individuals. From one of the source links from the linked article: "Norway announce that no Russian players will be able to play in the 2022 edition of the event"
There is no "EU passport", just 27 national passports that also have "European Union" written next to the issuing country. It's only up to individual countries to issue their passports, also Norway isn't in the EU anyway.
Or at least, it doesn't "advance the game of chess", which is what organizers should care more about.
There is probably some creative middle ground to be found here, such as awarding them without recognizing Russia, etc.